Ethiopia leather

Ethiopia has a long tradition of leather production. The country is one of Africa’s largest producers of hides and skins, and its leather sector employs thousands of people. Ethiopian Highland Leather in particular has qualities that are difficult to find elsewhere: soft yet strong, and well-suited to high-end products. Connecting that potential to European markets comes with many challenges.

Between 2020 and 2025, CBI worked with 10 Ethiopian leather companies. They developed their export capabilities and improved their sustainability practices. The collaboration focused on these companies developing collections suited to the European Union (EU) market, improve production quality and workplace conditions, and build the knowledge and confidence to compete internationally. Alongside this, the project invested in sector-level work. CBI and various partners worked on developing market research capacity within Ethiopian institutions, promoting Ethiopian Highland Leather as a sector flagship, and supporting the Ethiopian Leather Industries Association (ELIA).

Covid-19 delayed the start of physical activities by over 2 years. The conflict in Tigray and deteriorating security conditions across much of the country reduced tourist flows and hit the local market hard. Currency restrictions made it difficult to import quality materials. Despite these challenges, the companies involved showed real commitment and made meaningful progress.

Project results

By the end of the project:

• 10 companies completed the full programme
• 8 companies achieved exports to the EU during the project period
• All participating companies developed and implemented an Export Marketing Plan (EMP) and a Responsible Business Conduct (RBC) action plan
• Overall, the companies in the programme improved their RBC performance significantly
• Through a product development programme, companies built commercial collections for the EU market, working with locally available materials and reducing dependency on imported accessories
• 7 professionals from Ethiopian leather sector organisations completed a Train-the-Trainer (ToT) programme in EU-focused market research. They will continue to share this valuable expertise across the sector long after the project ends
• A national conference on Ethiopian Highland Leather was organised in 2024, followed by a public-private working group and a concrete action plan for developing EHL as a sector flagship;
• Ethiopia’s Kabana Design won the first CBI Sustainable Business Award in 2025, recognising the company’s progress on sustainability practices.

Total direct employment across the group grew by 53 jobs over the project period, with women employment increasing by 61%.

What is next

The companies that completed the programme have the knowledge, plans, and connections to continue developing their export activities. The market research capacity built within Ethiopian institutions can now be used and passed on independently.

The development of Ethiopian Highland Leather as a sector flagship offers exciting added potential. The new board of ELIA, elected at the end of 2025, brings a younger and more commercially oriented leadership to the sector association. There is hope that this renewed energy will help take the EHL initiative forward and give the sector a stronger, more coordinated voice.

CBI remains interested in the Ethiopian leather sector and welcomes conversations about future collaboration. If you are a European buyer, importer, or organisation active in this space, we would appreciate to hear from you.

Collaborate with CBI

For questions or more information about this project or the Ethiopian leather sector, please contact Hugo Verhoeven.

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About CBI

CBI promotes sustainable production and trade between low-and middle-income countries and the Netherlands and Europe. We partner with small and medium-sized enterprises (SMEs) and their ecosystem to strengthen their social and environmental sustainability.

CBI is part of the Netherlands Enterprise Agency and commissioned by the Netherlands Ministry of Foreign Affairs.